Since I got my iPhone, actually 3 months BEFORE I got mine, I downloaded some songs from iTunes and made them ringtones through iTunes. But even if I already owned the songs I still had to BUY them once from iTunes for .99 and then convert the selection of the song I wanted as a ringtone and PAY AGAIN for that ringtone. That just sounds crazy to me that I have buy the song that I already own and then pay again. SO, I did some digging online and found there are some decent options, especially if you are going to be adding a lot of ringtones for different callers.
Wired has many ways for you to get or make free iTunes ringtones for your iPhone.
I have been reading up on this and for $15 bucks you can buy some software that makes this a breeze, OR you can use Garageband or Quicktime to edit, upload, convert and apply to get free Ringtones of your favorite songs.
Below are some options:
my buddy Jason just passed this one on to me. Seems the easiest one yet. Audiko
iToner by Ambrosia Software (Mac only)
iPhoneRingtoneMaker by Efiko ( Windows only)
Ringtone Feeder: You can get Free Ringtones here or make your own for a small monthly subscription.